Reduction in Marine Application Area, Update on Consents

Reduction in Marine Application Area
and Update on Marine Consent Process

5 August
2014

Chatham Rock Phosphate (CRP or the Company) announces
that it has advised the Environmental Protection Authority
that it will remove the eastern end of application area
covered by prospecting permit 55967, comprising 4,985 km2
and representing about half the total, so the area for which
marine consent is being applied now totals 5,207
km2.

“Reducing the size of the Company’s application
area will have no impact on CRP’s mining plans for the
first 15 years, which is covered by its approved mining
permit and is subject only to a marine consent,” Managing
Director Chris Castle said.

“It just removes areas
covered by a prospecting permit application. However, it
will simplify questions from the EPA and submitters because
it means no seabed mining is being proposed by CRP on this
part of the Chatham Rise. The Company will only consider
mining in that area once more assessment has been carried
out.”

CRP is currently finalising its responses to the
requests by the decision making committee (DMC) for further
information. These requests, dated 9 June, 17 and 25 July
and which are a normal part of the process, are wide ranging
and some have required CRP to commission new research and
reports. In order to incorporate this new information as
well as the impact of the reduction in application area, CRP
has been granted an extension to the timetable for its
responses to the EPA, which were due to be submitted this
week, and now has until 25 August to submit its
evidence.

The scope of the questions includes more detail
on the benefits of the project to New Zealand and the
Chatham Islands, commercial viability, effects on commercial
fishing, migrating eels, benthic fauna, fish spawning,
sediment chemistry and trophic modelling, toxicity
thresholds, trace elements, habitats and seabirds, noise,
ocean currents and phosphate prices.

CRP says the changes
will not impact on the expected end date of the
decision-making timeframe or its proposed mining
plan.

“We do not believe the additional time involved in
preparing responses and evidence will impact on the
decision-making timeframes. Our advice is that a decision on
the application is still manageable by the end of
November.”

Mr Castle said the CRP team is focused on
providing accurate and considered information in response to
the requests from the decision-making committee
(DMC).

“We think taking the extra time now is really
positive because it helps clarify questions at an earlier
stage and will enable more efficient use of time later in
the process. A stitch in time saves nine, as they
say.”

“CRP wants to ensure the final package available
to the DMC and submitters contains the most up-to-date
information before the process advances. We also want to
make sure everyone understands the scope of the application
area so this can be addressed in evidence and answers to the
information requests.

“We think this approach will
benefit all parties. It’s consistent with the interests
of the community in being able to achieve an adequate
assessment of potential effects of CRP's proposal.

“Also
importantly we think the additional time invested now in
providing more detailed information and greater clarity
about the application area will ultimately allow both the
pre-hearing preparation process and the hearing itself to be
conducted as efficiently as possible.

“In that respect,
we expect the additional time taken now will require reduced
hearing time, particularly as only 75 of those who made
submissions wish to be heard, compared with 2,175 in respect
of Trans Tasman Resources.”

CRP has also asked for the
time extension will also apply to the EPA's staff report,
which the DMC is currently considering.

“We think the
EPA's report will offer greater assistance to the DMC once
it takes into account the responses provided to the requests
for further
information.”

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